HBA-TYH H.B. 3428 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3428 By: Najera Urban Affairs 3/26/1999 Introduced BACKGROUND AND PURPOSE Under existing state law, only school districts are allowed to enter into design-build contracts for public improvement projects. Design-build construction has been utilized in the private sector for many years. The advantage is in dealing with a team of architects, engineers, contractors, and subcontractors, rather than executing separate contracts for each. This can result in fewer change orders, tighter cost controls, and more timely completion of the work. School districts are currently the only public entities that have statutory authority to enter into design-build contracts. Municipalities are not currently allowed to enter into design-build contracts. H.B. 3428 amends Chapter 252, Local Government Code, to allow municipalities to enter into design-build contracts for public improvement projects. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 252, Local Government Code, by adding Section 252.051, as follows: Sec. 252.051. DESIGN-BUILD CONTRACTS FOR MUNICIPAL PUBLIC IMPROVEMENT PROJECTS OR FACILITIES. (a) Defines "design-build contract," "design-build firm," and "design criteria package." (b) Authorizes a municipality to use the design-build method for the construction, rehabilitation, alteration, or repair of a public improvement project or facility. Requires the contracting municipality and the design-build firm to follow the procedures provided by this section. (c) Authorizes the municipality to designate an engineer or architect to act as its representative. Requires any engineer or architect designated to be selected on the basis of demonstrated competence and qualifications in accordance with Subchapter A (Professional Services), Chapter 2254, Government Code. (d) Requires the municipality to prepare a request for qualifications that includes information that may assist potential design-build firms in submitting proposals for the project or facility. Requires the municipality to also prepare the design criteria package that includes more detailed information on the project or facility. Provides that if the preparation of the design criteria package requires engineering or architectural services that constitute the practice of engineering within the meaning of The Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes) or the practice of architecture within the meaning of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas Civil Statutes), those services are required to be provided in accordance with the applicable law. (e) Requires the municipality to evaluate proposals and select a design-build firm in the two specified phases. (f) Requires a firm's engineers or architects, following selection of that design-build firm, to complete the design, submitting all design elements for review and determination of scope compliance by the municipality's engineer or architect before or concurrently with construction. (g) Requires an engineer to have responsibility for compliance with the engineering design requirements and all other applicable requirements of The Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes). Requires an architect to have responsibility for compliance with the requirements of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas Civil Statutes). (h) Requires the municipality to provide or contract for, independent of the design-build firm, the inspection services, the testing of construction materials engineering, and the verification testing services necessary for acceptance of the project or facility by the municipality. Requires the municipality to select those services for which it contracts in accordance with Section 2254.004 (Contract for Professional Services of Architect, Engineer, or Surveyor), Government Code. (i) Requires the design-build firm to supply a signed and sealed set of construction documents for the project or facility to the municipality at the conclusion of construction. (j) Provides that a payment or performance bond is not required for, and prohibits it from providing coverage for, the portion of a design-build contract under this section that includes design services only. SECTION 2.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.